Waste oils into new production cycle: Study for Modrica Oil Refinery plant on public review

The Ministry of Spatial Planning, Civil Engineering and Ecology of Republika Srpska has been submitted a draft Environmental Impact Study for the project to build a waste oil re-refining plant within the industrial complex of Rafinerija ulja Modrica a.d. Modrica.

The project holder is the Modrica Oil Refinery, while the holder of the Study is Gradjevinski institut GIBL d.o.o. Banja Luka.

Public access to the draft Study is provided on the website of the Ministry of Spatial Planning, Civil Engineering and Ecology of Republika Srpska and in the premises of the Municipality of Modrica, in the period from June 10 to July 17, 2026.

A public hearing on the draft Study will be held on June 30, 2026 in the premises of the Municipality of Modrica, starting at 11 am.

New plant in existing industrial complex

The planned project concerns the construction and commissioning of a waste oil re-refining plant within the existing industrial complex of the Modrica Oil Refinery.

The project location is located within an already established industrial zone, equipped with infrastructure, existing reservoir capacities, handling areas and wastewater treatment systems.

The Study states that the project will make maximum use of existing infrastructure and technological systems, thus avoiding the occupation of new natural areas and additional fragmentation of space.

The new plant is planned in part of the existing Additive Storage facility and in the open space next to it. Since this is an intervention within an already established industrial zone, it is not expected to occupy new, previously undeveloped areas outside the boundaries of the complex.

Waste oils as raw materials for base oils

The main purpose of the plant is the re-refining, or processing, of used lubricating oils generated in industry, transport, car repair shops and other activities, into valuable products - base oils.

Waste oils fall into the category of hazardous waste, and in Bosnia and Herzegovina, as stated in the Study, they are generated in significant quantities, with their disposal currently not systematically resolved.

The project was initiated in response to the need to establish a sustainable and environmentally friendly system for managing this type of waste, while reducing negative impacts on the environment and rationally using natural resources.

The essence of the re-refining process is based on the processing of waste oils to obtain base oil that can be reused in the production of lubricants. This enables the closure of the material cycle and reduces the need for the exploitation of crude oil as a primary raw material.

Capacity of up to 3,000 tons per year

The technological process in the planned plant is based on modern molecular vacuum distillation technology, which enables continuous oil processing with a high degree of utilization and emission control.

The process includes several phases, including dehydration, separation of light fractions, vacuum distillation, finishing, or polishing, and waste gas treatment.

The designed capacity of the plant is 750 liters per hour, with the possibility of expanding to 1,500 liters per hour by adding additional equipment and connecting existing technological units.

In the basic configuration, the plant enables the production of one type of base oil, while increasing the capacity would enable the production of several different fractions of base oils.

The Study states that the planned plant, with a capacity of up to approximately 3,000 tons per year, represents a relatively small addition to the existing industrial complex, considering the capacities of the Modrica Oil Refinery and the available infrastructure.

Delivery, storage and control of raw materials

Various types of waste oils will be used as the basic raw materials in the process, including mineral non-chlorinated hydraulic oils, engine and transmission oils, synthetic oils, as well as insulation and heat transfer oils.

The raw materials will be delivered to the location by tankers or in appropriate packaging, after which they will be stored in existing tanks and subjected to quality control.

Based on the results of the analyses, appropriate mixing will be carried out to ensure input characteristics adapted to the designed process.

Contribution to circular economy and environmental protection

The document emphasizes that the waste oil re-refining project represents a strategic response to contemporary environmental and energy challenges, given that waste oils are often inadequately disposed of in practice, by burning them in inadequate combustion plants or by uncontrolled discharge into the environment.

Such practices lead to air, soil and water pollution, and have a particularly negative impact on air quality in urban areas during the winter months.

By redirecting waste oils from informal flows to controlled industrial treatment, the practice of burning them in inadequate conditions is reduced, which in the long term can contribute to reducing emissions of harmful substances and improving air quality.

The implementation of the project would enable the Modrica Oil Refinery, in addition to its existing production, to establish a system for disposing of its clients’ waste oils, thereby further improving its business model towards a circular economy and sustainable development.

At the same time, the project has a broader significance because it contributes to solving the problem of hazardous waste management at the level of Republik Srpska and Bosnia and Herzegovina, with the application of modern technological solutions and environmental protection standards.

S. Subara

Ministry of Spatial Planning Civil Engineering and Ecology of Republika Srpska

Municipality of Modriča

Modriča Oil Refinery

Građevinski institut GIBL Banja Luka

waste oil re refining

waste oils

base oils

hazardous waste

Environmental Impact Study

public review

public discussion

industrial complex

environmental protection

circular economy

sustainable development

molecular vacuum distillation

waste management